Three Tallinn hotels to make 250 staff redundant

Three hotels in Tallinn notified the Estonian Unemployment Insurance Fund (Töötukassa) last week they would be making 250 employees redundant.

Radisson Blu Sky Hotel, Swissotel and the Meriton submitted a collective redundancy notice and informed the fund of their actions.

Margit Paulus, head of the fund's analysis department, told ERR: "Last week, five institutions submitted a collective redundancy notice, a total of 317 people are planned to be made redundant. Three of them are accommodation and catering companies. One information and communication company and one wholesale and retail company,"

Astlanda or Radisson Blu Sky Hotel has submitted a redundancy notice for 98 jobs, Swissotel plans to lay off 83 people and the Meriton 70.

Kaido Ojaperve, CEO of Radisson Hotel, said the company plans to lay off about half of their current staff.

The law states collective termination of employment contracts requires notification, which has to be followed by a 15 day period of consultation. Only after which can the lists with the names of the people to be made redundant be submitted to the Unemployment Insurance Fund. It is also then that the final number of people to be laid off will be known.

Several other Tallinn hotels, such as Tallink Grupp's OÜ TLG Hotell, OÜ BRE Hotels, Ülemiste Hotell and Haveli Invest have announced they will be making redundancies.

Unemployed is rising

The number of unemployed increased by two percent last week. As of Sunday, according to the Unemployment Insurance Fund, 48,822 people were registered as unemployed and the registered unemployment rate was 7.5 percent. 

Last week, 1,534 newly unemployed people were registered and 1,950 the week before. A total of 11,190 unemployed were registered in April, which is 23 percent more than in March.

Paulus said the number of unemployed is on the rise and is mainly growing in the trade and customer service sectors, but also in construction and catering and accommodation companies.

Of the new registered unemployed added last week, 34 percent were laid off from their last job. Redundancies have slightly increased compared to the previous week. The largest increase in unemployment has been in Tallinn, Harju and Hiiu counties.

So far 6,407 institutions have applied for compensation for salaries for March and 32,802 people have applied for compensation. 

In April, salary compensation was granted to 5,688 employees of 15 institutions. The total cost of the benefit is at €33.1 million on Monday morning.


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Editor: Helen Wright

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